After two years of operational deficits, the Otago University Students Association plans to be back in the black next year.
Facing rising costs and declining income from commercial activities, it has rearranged its 2011 budget, levying students more and and increasing the proportion of levies earmarked for operational spending.
The organisation has about 22,000 members, the bulk of them full-time students at the Dunedin campus.
This year, combined operational and capital levies for full-time Dunedin students were $159.64, excluding GST, split almost evenly between operational and capital spending.
Combined levies next year will be $165.67, excluding GST, with $120 of that going to support operational spending.
The change was made to ensure income was allocated where it was needed, manager Stephen Alexander said.
"We were building up more capital reserves than was really necessary."
In a major restructuring this year the executive was reduced from 17 members to 10 from next year. Executive expenses and honorariums are expected to drop by 12.6% next year, from $192,000 to $167,700.
Total operational expenditure is expected to increase by 11.5%, from $2.15 million to $2.4 million.
The 2011 capital budget will decline by 37.1% next year, from $1.05 million to $663,000. However, actual spending will decline by about $90,000, as most of the reduction will be achieved because $300,000 will not be put aside into a capital works savings fund as was done this year.
THE BUDGET
- Otago University Students' Association operational surplus/deficit. -
• 2008: $42,779.
• 2009: minus $323,558.
• 2010 (forecast): minus $88,704.
• 2011 (forecast): $82,108.
